Ford Motor Company and Geely Automobile Holdings announced an agreement to establish a joint venture (joint venture) aimed at the European market. The production facility will be located at Ford’s industrial complex in Valencia, Spain, and is expected to begin operations in the first half of 2027, subject to the necessary regulatory approvals. Under the proposed ownership model, Ford will hold a 66% stake in the new company, while Geely Auto will hold 34%.
Production and market performance
The new company will produce passenger vehicles with multiple types of drives (multi-energy) for both brands. The factory in Valencia, whose potential annual capacity is around 500,000 vehicles, will start production of four new models from 2028. It is a new member of the Ford Bronco family, a completely new Ford crossover developed in cooperation with Geely and two electric SUV models of the Geely brand.
New Fords crossover it is part of a wider strategy by which the company plans to place five new passenger vehicles on the European market by 2029. Production of the existing Ford Kuga model, on the other hand, will continue without interruption during the transition period.
By combining production volumes, Ford and Geely aim to maximize the capacity of the Valencia plant and reduce costs per vehicle produced. The decision to partner comes at a time of strong competition in the European automotive market, marked by stricter regulations, high operating costs and the emergence of new global competitors.
President of Ford of Europe, Jim Baumbickpointed out that the goal of the partnership is to fully utilize the high-class factory and its workforce and respond to new cost standards in the industry. On the other hand, the vice president of Geely Auto Group, Alex Nanemphasized that the collaboration reflects a commitment to open and joint product development as part of their growth strategy.
The relations between these two companies date back to 2010, when Ford sold Volvo Cars to Geely. Negotiations on this joint venture lasted several months. In the first half of this year, Geely Auto recorded sales of 474,228 vehicles on foreign markets, while in 2025, it achieved total cumulative sales of 3,024,567 units.